Case Law Analysis
|Allahabad High Court
Section 138 NI Act | Only Cheque Signatory Liable in Joint Account: Allahabad HC Rejects Vicarious Liability for Non-Signatories
Allahabad HC clarifies that under Section 138 of the Negotiable Instruments Act, only the individual who signs the cheque can be prosecuted, shielding joint account holders who did not sign from liability. The ruling reinforces that vicarious liability under Section 141 NI Act does not extend to individuals in cheque dishonour cases.